A mortgage is a security interest in the property you are purchasing, ensuring repayment of the related loan. This security interest is discharged once the principal and interest are fully paid, as outlined in the mortgage document. Essentially, the property serves as collateral for the loan, providing the lender with a claim to the property if you default. In Quebec, mortgages are referred to as “hypothecs.” Understanding these terms is crucial for navigating the home-buying process and managing your financial obligations effectively.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*